What Is Net Worth?

Net worth is a simple calculation: everything you own minus everything you owe. It's the clearest snapshot of your financial position at any point in time. Unlike income, which measures money flowing in, net worth measures what you've actually built. (For the full formula and more examples, see our guide on how to calculate net worth.)

Net Worth = Total Assets − Total Liabilities

Why Track Your Net Worth?

See the full picture. Income alone doesn't tell you if you're building wealth or going deeper into debt. Net worth shows both sides.
Measure real progress. Monthly snapshots reveal trends that daily spending habits can't. Are you moving in the right direction?
Make better decisions. When you can see how a purchase or debt payoff changes your net worth, you make more informed choices.
Stay motivated. Watching your net worth grow over months and years is one of the most motivating things in personal finance. It also makes the big net worth milestones feel concrete and reachable.

What to Include in Your Net Worth

The rule of thumb: include anything with real resale value, and value it at what it would sell for today — not what you paid. Not sure whether something counts? Our guide on assets vs. liabilities walks through the edge cases.

Assets (What You Own)

Bank accounts (checking, savings, money market)
Investment accounts (brokerage, stocks, bonds, crypto)
Retirement accounts (401k, IRA, Roth IRA, pension)
Real estate (current market value, not purchase price)
Vehicles (current resale value, which usually falls each year)
Other valuables (business equity, collectibles, etc.)

Liabilities (What You Owe)

Mortgage balance
Car loans
Student loans
Credit card balances
Personal loans
Any other debts

A Worked Example

Numbers make this concrete. Here's a typical mid-career household running the calculation. Yours will look different — the point is the structure, not the figures.

Assets

Checking & savings$18,000
401(k) & IRA$62,000
Home (market value)$310,000
Car (resale value)$14,000
Total assets$404,000

Liabilities

Mortgage$242,000
Student loans$21,000
Car loan$9,000
Credit cards$3,500
Total liabilities$275,500

$404,000 − $275,500 = $128,500 net worth

If your total comes out below zero, that's more common than you'd think — especially early in a career with student loans. Here's a plan for turning a negative net worth around. Want to run your own numbers without any math? Use the free net worth calculator.

Methods for Tracking Net Worth

Spreadsheets

Flexible but tedious. You have to build formulas, maintain the sheet, and remember to update it. Easy to make errors. No mobile-friendly experience.

Apps That Require Bank Login

Apps like Mint and YNAB connect directly to your bank accounts via services like Plaid. They automate data collection but require you to share your bank credentials with a third party. Your financial data lives on their servers. See how the options compare in our best net worth tracker apps breakdown.

Offline Net Worth Trackers

Apps like CustomWorth let you track net worth without connecting your bank. You manually enter balances, keeping your data private and on your device. Simple, fast, and no credentials to share.

How Often Should You Track It?

Monthly is the sweet spot for most people. It's frequent enough to catch trends and stay motivated, but not so frequent that day-to-day market swings make the number feel random. Pick a consistent day — the 1st of the month, or payday — and take a snapshot then.

Weekly if you're paying down debt fast and want the motivation of visible progress.
Monthly for steady, low-effort tracking — the default we'd recommend.
Quarterly at a minimum; any less often and you lose the trend line that makes tracking useful.

Common Mistakes to Avoid

Using purchase price instead of current value. A car you bought for $30,000 might only be worth $14,000 today. Always use what an asset would sell for now.
Forgetting liabilities. It's tempting to total your assets and stop. A complete net worth number needs every debt, down to the credit card balance you plan to pay off this month.
Confusing income with net worth. A high salary doesn't make you wealthy if it all goes out the door. See net worth vs. income for why the distinction matters.
Reacting to noise. Checking daily and panicking over a dip in your investments is a fast track to bad decisions. Monthly snapshots smooth out the noise.
Inflating consumer goods. Furniture, electronics, and clothes have almost no resale value. Leave them out rather than padding your assets.

How CustomWorth Makes It Easy

CustomWorth is a free net worth tracker for iPhone that works 100% offline. No bank login, no accounts, no tracking. Just download from the App Store and start adding your assets and liabilities. Take snapshots to track your progress over time.

Download CustomWorth from the App Store. It's free with no ads or subscriptions.
Add your assets (bank accounts, investments, property, etc.) with current balances.
Add your liabilities (loans, credit cards, mortgage, etc.).
View your net worth on the dashboard, calculated instantly.
Take snapshots monthly to track your progress over time.

Start Tracking Your Net Worth Today

Free. Offline. Private. No bank login required.

Download CustomWorth

How to Track Your Net Worth (Step-by-Step Guide)